Apple Watch unlock intermittently stops working

Dave re-reading your message - when the Apple watch could not unlock 1PW, I logged out. I was prompted to re-enter my password to log back on (in other words I could NOT authenticate with my Apple watch). Once I logged back in, 1PW began functioning again with my Apple watch. Not sure what this indicates, but I suspect you have an idea. I have kept "Log out automatically after inactivity" selected throughout the testing. Hope this helps.